The  Cleveland  Federation  for  Charity  and  Philanthropy 


AS  PROPOSED  BY 

The  Committee  on  Benevolent  Associations  of 
The  Cleveland  Chamber  of  Commerce 
January  Seventh,  1913 


Digitized  by  the  Internet  Archive 
in  2016 


https://archive.org/details/clevelandfederatOOclev 


CS33 


fPWvT?  d\xec\ 


To  the  Board  of  Directors , 

The  Cleveland  Chamber  of  Commerce. 


Gentlemen : 

The  rapid  increase  of  population  enjoyed  by  Cleveland  has  Increasing 
of  itself  made  necessary  a considerable  increase  of  the  city’s  number  of 
benevolences.  But  these  have  undoubtedly  increased  even  faster  charitable 
than  the  population,  as  a result  of  the  broadening  of  our  social  institutions 
interests  and  the  quickening  of  our  civic  ideals — advances  of 
which  every  citizen  is  conscious  and  which  are  making  our 
growth  something  more  than  a mere  addition  of  numbers.  The 
resultant  development  of  benevolent  activities  and  institutions 
may  well  be  a cause  of  real  satisfaction  to  all;  nevertheless  it 
brings  with  it  problems  that  should  receive  serious  and  universal 
consideration. 

In  May,  1900,  it  was  found  that  fifty-one  institutions  had  Creation  of 
been  created  to  express  in  one  form  or  another  the  good  will  of  committee 
Cleveland.  In  order  to  be  of  service  to  the  organizations  deserv-  on  benevolent 
ing  public  support,  the  Chamber  created  the  committee  on  benev-  associations  to 
olent  associations.  Its  duties  as  outlined  were  “to  protect  the  giv-  protect 
ing  public  against  solicitations  for  unworthy  purposes  and  thus  to  contributors 
assist  worthy  and  efficient  institutions,  whose  income  had  be- 
come adversely  affected  by  the  existence  of  much  fraudulent 
solicitation.”  As  a means  to  this  end  it  was  suggested  that  the 
committee  investigate  carefully  all  charitable  organizations  in 
the  city  and  issue  a card  of  endorsement  to  such  as  complied  with  Endorsement 
a certain  standard  of  excellence.  As  a condition  of  endorsement  car(q  issued  io 
the  committee  has  been  able  to  require,  in  most  cases,  such  re-  worthy 
organization  and  improvement  of  methods  as  has  resulted  in  institution 
an  adequate  meeting  of  the  needs  for  which  the  organization 
was  intended,  economy  of  expenditures  and  intelligent,  business- 
ke  operation. 


In  order  to  carry  out  its  policy,  the  committee  has  stipulated, 
as  far  as  is  practicable,  that  organizations  comply  with  the  fol- 
lowing requirements : 

1.  The  organization  shall  fill  a need  not  already  well  filled 
by  an  existing  organization,  and  not  capable  of  being  thus  filled. 


Requirements 

for 

endorsement 


2.  The  need  shall  be  relatively  great  enough  to  warrant 
the  equipment  and  support  of  a separate  organization. 


4 


Educational 

methods 


3.  The  organization  shall  agree  to  co-operate  with  other 
benevolent  associations  in  promoting  efficiency,  and  economy  of 
administration  in  the  charities  of  the  city  as  a whole,  and  in 
preventing  duplication  of  effort. 

4.  The  administrative  committee  of  the  organization  shall 
meet  at  least  quarterly. 

5.  All  funds  shall  be  collected  according  to  a method  ap- 
proved by  the  committee  on  benevolent  associations. 

6.  The  accounts  of  the  organization  shall  be  regularly 
audited  and  a copy  of  its  annual  report  shall  be  filed  with  the 
committee  on  benevolent  associations. 

7.  The  operations  of  the  organization  and  its  accounts  shall 
always  be  open  to  the  investigation  of  accredited  representatives 
of  the  committee  on  benevolent  associations. 

Before  endorsement  was  granted,  the  committee  usually  ar- 
ranged for  a personal  investigation  to  discover  in  detail  the 
character  of  work  done  by  the  various  charitable  organizations 
of  the  city  and  a written  statement  giving,  in  detail,  the  essential 
facts  regarding  the  organization  was  required.  A card  of  en- 
dorsement was  granted  to  such  as  complied  with  the  committee’s 
standards.  Members  of  the  Chamber  and  the  contributing  public 
in  general  were  requested  to  contribute  only  to  those  bearing  the 
card  of  endorsement.  At  first  contributors  were  inclined  to  rely 
upon  their  own  judgment,  pursuing  the  policy  of  previous  years, 
and  not  realizing  that  a careful  investigation,  backed  by  trained 
judgment  and  adequate  conceptions,  was  necessary  to  determine 
the  need  for  an  organization  and  its  fitness  to  do  charitable 
work.  The  committee  found  it  necessary  therefore  to  inaugurate 
a campaign  of  education  along  these  lines.  When  it  was  found 
that  a contributor  had  given  to  an  unendorsed  institution  the 
contributor  was  called  by  telephone,  the  reason  for  the  com- 
mittee’s refusal  to  endorse  was  carefully  explained,  and  an  effort 
was  made  to  impress  upon  him  the  justice  of  this  action  and  the 
mutual  advantage  which  would  obtain  through  his  co-operation 
with  the  committee.  The  Chamber  by  means  of  circulars  notified 
its  members  of  hopelessly  unworthy  institutions  which  were 
receiving  the  support  of  the  public.  The  newspapers  gave  their 
cordial  co-operation.  Many  organizations  were  prevailed  upon, 


5 


in  making  their  solicitations,  to  present  a card  of  endorsement, 
whether  the  contributor  asked  it  or  not,  thus  bringing  to  the 
attention  of  the  public,  the  existence  of  the  system.  After  years 
of  education  and  development  the  community  has  come  to  recog- 
nize the  value  of  this  committee’s  work  and  to  rely  almost  uni- 
versally on  the  committee’s  action.  Strong  institutions  now 
consider  the  card  of  vital  importance  in  collecting  funds.  Smaller 
institutions  say  that  the  committee’s  endorsement  is  essential  to 
their  support  and  that  existence  would  be  impossible  without  it. 

As  a condition  of  endorsement  of  the  various  organizations 
each  succeeding  year,  the  committee  requires  evidence  that  the 
standard  of  efficiency  is  gradually  improving.  In  addition  to  this, 
the  committee  plans  to  select  perhaps  half  a dozen  organizations 
for  special  attention.  Their  methods  are  carefully  studied,  con- 
ferences are  held  with  boards  of  management,  and,  if  necessary, 
fundamental  changes  are  insisted  upon  to  bring  about  the  very 
highest  standard  of  efficiency. 

The  committee  has  endeavored  not  only  to  eliminate  worth- 
less institutions  and  prevent  the  creation  of  new  organizations 
which  do  a work  similar  to  one  already  in  existence,  but  the 
committee  has  been  directly  instrumental  in  the  inauguration  of 
movements  to  meet  needs  not  already  provided  for  by  the  de- 
velopment of  existing,  or  the  creation  of  new,  organizations. 

Twelve  years  of  such  intelligent  co-operation  has  resulted  in 
the  combination  of  organizations  where  duplication  of  work  ex- 
isted ; the  reorganization  of  other  institutions  or  the  entire  elim- 
ination of  some  whose  work  was  useless,  while  more  economic 
methods  of  collecting  contributions  from  the  public,  by  reducing 
the  number  of  paid  solicitors,  benefits,  fairs,  socials  and  entertain- 
ments which  are  at  best  very  expensive  methods  of  raising  funds 
for  charitable  support,  have  been  established. 

This  decade  of  careful  supervision,  although  producing  ex- 
ceptional benefits  to  worthy  organizations,  has  not  solved  certain 
problems  with  which  the  charitable  work  of  the  city  is  con- 
fronted. First — some  of  the  most  reliable  charitable  organiza- 
tions in  the  city  have  experienced  great  difficulty  in  raising  money 
sufficient  to  carry  on  an  aggressive  and  thoroughly  efficient  work, 
while  other  societies  doing  a less  important  work  have  been 


Increasing 

efficiency 

required 


Committee' s 

constructive 

policy 


Committee' s 

supervisory 

capacity 


Financial 

problems 

presented 


Increased 
burden  upon 
certain 
contributors 


Charitable 
budgets 
canvassed  in 
I9°7 


Few  contribu- 
tors to  Cleve- 
land charity 


Limited  inter- 
est of  contrib- 
utors. 


6 

laying  up  a surplus  of  receipts  over  expenditures  from  year  to 
year,  and  some  institutions  have  collected  from  the  public  money 
which  has  been  expended  in  maintaining  an  inefficient  or  need- 
less work.  Second — the  demands  upon  a certain  class  of  con- 
tributors have  continually  increased  until  those  known  to  be 
charitably  inclined  have  come  to  be  unduly  burdened  by  the 
present  solicitations  of  the  representatives  of  various  charitable 
organizations.  One  who  has  given  largely  to  charity  reports 
having  spent  an  entire  forenoon  listening  to  solicitors  from  ten 
different  institutions.  Three  more  called  but  it  was  impossible 
for  him  to  see  them,  having  already  spent  so  great  a portion  of 
his  time  on  matters  which  did  not  concern  his  business.  He  later 
learned  that  these  three  individuals  represented  the  three  insti- 
tutions in  which  he  was  most  interested. 

Desiring  to  assist  the  charitable  institutions  and  the  con- 
tributing public  in  the  solution  of  these  problems,  the  committee 
on  benevolent  associations  during  the  summer  of  1907  made  a 
thorough  investigation  of  the  budgets  of  sixty-one  charitable 
institutions.  This  study  covered  such  particulars  as  total  budgets, 
the  cost  of  collection,  the  amount  of  invested  funds,  sources  of 
income,  and  the  number  of  contributors,  a list  being  made  of 
those  who  contributed  in  amounts  of  five  dollars  or  more. 
The  investigation  covered  the  work  of  the  fifty-eight  chari- 
table institutions  endorsed  by  the  committee  on  benevolent  as- 
sociations of  this  Chamber,  and  three  which  were  not  endorsed 
but  which  were  receiving  considerable  support  from  the  com- 
munity. It  was  found  that  the  total  income  for  the  work  of 
these  organizations  was  $994,491.00,  of  which  $39,596.00  was 
given  directly  by  the  public  in  anonymous  gifts  and  in  sums  of 
less  than  five  dollars,  $442,811.00  by  5,733  people  in  amounts  of 
five  dollars  and  over,  and  the  remainder  or  $512,084.00  was  de- 
rived from  endowment,  legacies,  beneficiaries,  etc. 

It  is  to  be  noted  that  2,153  contributors  gave  only  2.46% 
of  the  money,  and  this  in  subscriptions  of  ten  dollars  or  less, 
while  thirteen  people,  or  but  two-tenths  of  one  per  cent  of  the 
total  number  of  contributors,  gave  over  one-third  of  all  money 
contributed  to  charity.  Seventy-four  people  gave  more  than  one- 
half  of  the  money  contributed,  and  411  people  gave  three-fourths 
of  the  total. 


7 


The  results  of  the  canvass  of  1907  revealed  the  fact  that 
the  contributing  public  is  not  interested  in  and  educated  to  the 
broad  demands  of  charity.  72%  of  the  whole  number  of  individ- 
uals contributing  to  charity  gave  to  but  one  institution,  while 
those  contributing  to  three  or  less  amount  to  90%,  leaving  only 
one-tenth  who  contributed  to  more  than  three  organizations.  Only 
twelve  contributed  to  twenty  or  more,  and  there  was  only  one 
who  contributed  to  more  than  thirty. 

The  facts  in  regard  to  the  number  of  contributors  to  charity 
presented  in  the  report  were  startling,  even  to  those  who  had 
made  a special  study  of  charitable  work  in  Cleveland.  The 
question  was  immediately  raised  as  to  whether  the  methods 
employed  in  securing  contributions  from  the  public  were  not  at 
fault  in  not  distributing  the  burden  of  benevolent  work  more 
evenly  by  increasing  the  number  of  contributors.  The  fact  that 
only  5,733  people  in  a city  of  over  a half-million  of  individuals, 
contribute  to  charity,  stands  as  a discreditable  reflection,  either 
upon  the  directors  of  charitable  interests,  or  upon  the  methods 
employed  in  securing  the  public’s  support.  The  committee  on 
benevolent  associations  tentatively  suggested  the  federated  plan 
of  collecting  and  distributing  all  moneys  for  charitable  purposes 
as  a remedy  for  this  and  other  conditions  which  appeared  to 
hinder  the  largest  development  of  philanthropic  work  in  Cleve- 
land. The  printed  report  covering  the  results  of  the  first  census 
was  mailed  to  374  contributors  to  charity.  These  were  chosen 
because  they  represented  that  class  of  people  who  were  intelli- 
gently endeavoring  to  enlighten  themselves  as  to  the  best  methods 
of  using  their  money  to  further  philanthropic  work,  and  because 
as  shown  by  the  statistics,  they  were  giving  70%  of  the  amount 
contributed  to  charity. 

A blank  upon  which  were  the  following  questions  was  in- 
cluded with  each  report: 

(1)  Does  the  proposed  federated  collection  of  funds  for 
charitable  purposes  meet  with  your  general  approval? 

(2)  In  the  event  that  a federation  is  effected  on  substan- 
tially the  plan  outlined  in  the  report,  will  you  support 
such  a federation  to  the  extent  that  you  now  con- 
tribute to  separate  organizations?  (It  is  understood. 


Summary 
of  1907 
canvass 


Present  inade- 
quate methods 
of  raising 
money 


Large  contrib- 
utors favor 
Federation 
plan 


8 


Necessary 
delay  in 
institution  of 
federation 


Charitable 
budgets 
canvassed  in 
1910 


Co-operation 

Of 

organizations 


of  course,  that  contributors  may  designate  the  organ- 
izations to  which  they  desire  to  contribute.) 

136  answers  were  received  from  these  persons. 

119  contributors  gave  unqualified  approvals  of  the  plan. 

4 contributors  gave  qualified  approvals. 

8 contributors  gave  qualified  approvals  subject  to  certain 
objections. 

2 contributors  gave  qualified  approvals  subject  to  further 
investigation. 

3 contributors  gave  an  unqualified  disapproval. 

Backed  by  such  enthusiastic  endorsement  the  committee  was 
considering  a campaign  to  educate  the  contributing  public  to  the 
merits  of  the  federated  plan  and  if  it  then  appeared  feasible,  to 
secure  its  immediate  adoption.  But  before  this  publicity  cam- 
paign could  be  started,  the  depression  of  industrial  and  financial 
conditions  made  it  seem  impracticable  to  commence  the  under- 
taking. It  was  determined  that  the  advent  of  such  an  organiza- 
tion should  be  left  to  the  time  when  the  relative  financial  needs 
and  resources  should  be  not  only  stable,  but  should  also  be  as 
nearly  equal  as  possible.  Therefore  the  matter  was  dropped 
for  a time. 

In  December  of  1909,  the  matter  was  again  taken  under 
consideration,  but  two  years  had  lapsed  since  the  first  canvass. 
The  increasing  demands  of  charity  and  the  changed  conditions 
among  both  contributors  and  institutions  made  the  results  of 
the  first  canvass  of  comparatively  little  value. 

It  was  thought  advisable  also  to  secure  new  figures  which 
might  be  used  in  comparison  with  the  original  canvass,  and  in 
this  way  to  indicate  the  general  trend  of  charitable  work.  No 
less  important  was  the  desire  upon  the  part  of  the  committee 
to  make  doubly  certain  that  the  canvass  of  the  previous  year  had 
not  been  exceptional.  Accordingly  the  committee  determined 
upon  a second  canvass. 

The  letter  sent  to  the  various  organizations  asked  for  in- 
formation of  a very  wide  range  and  very  great  detail.  The 
co-operation  manifested  by  the  organizations  in  compiling  the 
material  desired  showed  their  desire  for  a change  in  the  man- 
ner of  raising  money  for  charitable  purposes.  They  have  shown 


9 


themselves  willing  to  co-operate  in  every  possible  manner  to  find 
a solution  for  reducing  the  time  and  eliminating  the  excessive 
cost  of  collecting  funds  for  charitable  purposes. 

In  the  original  canvass,  facts  covering  the  budgets  of  sixty- 
one  institutions  were  secured,  while  in  the  present  census  seventy- 
three  institutions  were  covered.  One  which  was  included  in  the 
previous  canvass  was  dropped  because  the  nature  of  its  work 
placed  it  without  the  jurisdiction  of  the  committee  on  benevolent 
associations.  Three  organizations  did  not  report,  two  organiza- 
tions had  suspended  work  and  did  not  handle  any  money  during 
the  year  of  1909.  The  Salvation  Army  was  included  as  three 
organizations  because  these  branches  are  separately  endorsed 
by  the  committee  on  benevolent  associations.  The  Jewish  Federa- 
tion was  counted  as  one  organization  although  in  reality  it  repre- 
sented eleven  separate  institutions.  fTwo  of  the  above  institu- 
tions had  not  been  endorsed  by  the  Chamber  of  Commerce. 

It  was  found  that  the  total  income  for  the  work  of  these 
organizations  was  $1,893,010.33.  This  income  was  divided  into 
seven  classes. 

First:  Direct  contributions  solicited  from  the  public.  This 

source  of  income  was  sub-divided  into  general  solicited  contribu- 
tions, anonymous  donations,  moneys  received  from  so-called  con- 
tributing* memberships,  and  special  contributions  for  build.ng, 
equipment,  or  other  such  funds.  Contributions  of  $5  or  over 
were  recorded  under  the  name  of  the  contributor,  contributions 
of  less  than  $5  were  not  taken  separately,  but  were  recorded  in 
a lump  sum. 

Second:  Income  from  those  paying  for  a portion  of  the 

benefit  derived,  that  is,  the  earning  capacity  of  some  organiza- 
tions. 

Third:  Income  from  invested  funds. 

Fourth:  Proceeds  from  fairs,  benefits,  socials,  etc. 

Fifth:  Gifts  in  the  form  of  legacies  or  bequests. 

Sixth:  Money  derived  from  sources  outside  of  the  city. 

Seventh:  Miscellaneous  sources  of  income. 


Sources  of 
income 


The  contributions  directly  solicited  from  the  public  given  in  sums  of  $5  or  over,  with  exception  of 
anonymous  contribu  Lions  amounted  to  $4>9, 639.51  and  were  given  by  5386  individ- 
uals. The  table  indicates  the  ratio  between  the  number  of  people 
contributing  and  the  amount  contributed: 


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11 


It  will  be  noted  that  six  people,  or  one-tenth  of  one  per- 
cent gave  42.12%  of  all  the  money  thus  given  to  charity.  253 
people,  or  4.68%  of  the  number  of  people  contributing  to  charity  Summary 
gave  72.6  of  the  total  amount  contributed.  1849  people,  or  of  igog 
34.33%  of  the  number  of  people  contributing  to  charity  gave  canvas 
only  1.91%  of  all  that  was  given  to  charity,  and  this  was  given 
in  sums  of  $10  or  less.  A study  of  the  breadth  of  charitable 
interest  on  the  part  of  those  contributing  is  no  less  interesting 
and  instructive. 


Contributions  to  charitable  institutions  in  Cleveland  in 
amounts  of  from  $5.00  to  $10.00. 

1639  individuals  contribute  to  1 institution. 

210  corporations  “ “ 1 “ 

In  amounts  of  from  $10.00  to  $25.00. 


927 

individuals 

contribute 

to 

1 

institution. 

374 

“ 

66 

66 

2 

institutions. 

126 

66 

66 

66 

3 

66 

25- 

66 

66 

66 

4 

66 

120 

corporations 

66 

66 

6 6 

1 

institution. 

79 

66 

66 

2 

institutions. 

20 

66 

66 

“ 

2 

66 

2 “ “ “ 4 

nounts  of  from  $25.00  to  $100.00. 

66 

456 

individuals 

contribute 

to 

1 

institution. 

131 

66 

66 

66 

2 

institutions. 

124 

66 

66 

“ 

3 

66 

119 

66 

66 

66 

4 

66 

98 

66 

66 

5 

66 

46 

66 

“ 

66 

6 

66 

29 

66 

66 

7 

66 

15 

66 

66 

66 

8 

66 

8 

66 

66 

66 

9 

66 

3 

66 

66 

66 

10 

66 

1 

66 

66 

66 

11 

66 

2 

66 

66 

66 

12 

66 

64 

corporations 

66 

66 

66 

1 

institution. 

46 

66 

6 6 

2 

institutions. 

36 

66 

66 

66 

3 

a 

20 

6 6 

66 

66 

4 

it 

22 

66 

66 

66 

5 

it 

11 

66 

66 

66 

6 

a 

14 

66 

66 

66 

7 

tt 

6 

66 

66 

66 

8 

a 

1 

66 

66 

66 

9 

a 

12 


1 

44 

u 

44 

10 

4t 

1 

u 

a 

44 

11 

44 

1 

44 

u 

44 

12 

44 

1 

a 

u 

44 

17 

44 

amounts  of  from  $100.00  to 

$500.00. 

97 

individuals  contribute 

to 

1 

institution. 

50 

44 

a 

44 

2 

institutions. 

46 

u 

a 

“ 

3 

44 

32 

u 

(C 

44 

4 

44 

28 

a 

a 

44 

5 

44 

29 

u 

a 

44 

6 

“ 

22 

u 

a 

44 

7 

44 

22 

“ 

(C 

44 

8 

44 

16 

u 

u 

44 

9 

“ 

10 

u 

4 i 

44 

10 

44 

15 

u 

u 

44 

11 

44 

10 

a 

u 

44 

12 

44 

1 

“ 

u 

44 

13 

44 

3 

u 

u 

44 

14 

“ 

3 

u 

u 

44 

16 

44 

1 

u 

a 

44 

17 

44 

1 

44 

44 

44 

20 

44 

17 

corporations 

44 

44 

1 

institution. 

9 

44 

44 

44 

2 

institutions. 

10 

44 

44 

44 

3 

44 

8 

u 

44 

44 

4 

44 

1 

u 

44 

“ 

5 

“ 

4 

(( 

44 

44 

6 

44 

8 

u 

44 

44 

7 

44 

3 

44 

44 

44 

8 

44 

4 

4 4 

44 

44 

9 

44 

7 

44 

44 

44 

10 

44 

8 

u 

44 

44 

11 

44 

7 

44 

44 

44 

12 

44 

3 

a 

44 

44 

13 

44 

3 

u 

44 

44 

14 

44 

2 

C( 

44 

44 

15 

44 

6 

u 

44 

44 

16 

44 

1 

a 

44 

44 

17 

44 

1 

a 

44 

44 

18 

44 

2 

a 

44 

44 

19 

44 

1 

a 

44 

44 

20 

44 

2 

a 

44 

44 

22 

44 

1 

a 

44 

44 

23 

44 

1 

a 

44 

44 

32 

44 

13 


In  amounts  of  from  $500.00  to  $1,000.00. 


3 

individuals 

contribute 

to 

1 

institution. 

2 

a 

ii 

ii 

2 

institutions. 

7 

a 

ii 

ii 

3 

ii 

4 

a 

ii 

ii 

5 

ii 

2 

a 

ii 

ii 

6 

ii 

4 

“ 

a 

ii 

7 

ii 

2 

a 

a 

ii 

8 

ii 

5 

a 

a 

ii 

9 

ii 

1 

a 

a 

ii 

10 

ii 

3 

a 

“ 

ii 

11 

“ 

1 

a 

a 

ii 

12 

ii 

3 

a 

a 

ii 

13 

“ 

2 

a 

a 

ii 

14 

ii 

3 

a 

a 

“ 

15 

ii 

1 

a 

a 

ii 

17 

ii 

1 

a 

a 

ii 

2 

ii 

1 

a 

a 

ii 

3 

ii 

2 

corporations 

a 

ii 

1 

ii 

1 

ii 

a 

ii 

5 

ii 

1 

a 

a 

ii 

8 

ii 

1 

a 

a 

ii 

9 

ii 

1 

a 

a 

ii 

11 

ii 

1 

ii 

a 

ii 

12 

ii 

1 

ii 

a 

ii 

15 

“ 

1 

ii 

a 

ii 

18 

ii 

1 

ii 

a 

ii 

19 

ii 

1 

ii 

“ 

ii 

25 

ii 

1 

ii 

a 

a 

29 

“ 

amounts  of  from  $1,000.00  to  $5,000.00. 

5 

individuals 

contribute 

to 

1 

institution. 

2 

ii 

ii 

ii 

2 institutions 

2 

ii 

ii 

ii 

4 

ii 

2 

ii 

ii 

a 

5 

ii 

5 

ii 

ii 

a 

6 

ii 

2 

ii 

ii 

a 

8 

ii 

2 

ii 

ii 

a 

10 

ii 

1 

ii 

ii 

a 

11 

ii 

2 

ii 

ii 

a 

12 

a 

2 

ii 

ii 

a 

13 

a 

4 

ii 

ii 

a 

15 

a 

2 

ii 

ii 

a 

16 

a 

2 

ii 

ii 

a 

17 

a 

3 

a 

ii 

a 

18 

a 

14 


1 

1 

1 

1 


u 

a 


tt 


“ 20 
“ 22 
“ 25 
“ 27 


institutions. 

a 


In  amounts  of  from  $1,000.00  to  $5,000.00. 

2 corporations  contribute  to  1 institution. 
1 “ “ “ 2 

1 “ “ “ 5 

(<  U H y 

1 “ “ “ 16 

j a <<  a yj 

1 “ “ “ 22 


In  amounts  of  $5,000.00  or  over. 

1 individual  contributes  to  6 institutions. 


y (t  u u y 

1 « « “ 14 

1 “ “ “ 31 

1 “ “ “ 34 

1 corporation  “ “ 1 


The  following  page  gives  the  summary  and  ratio. 


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16 


Narrow 
rayige  of 
gifts 


labular 

results 

summarized 


It  will  be  noted  that  only  33  people  contributed  to  more 
than  16  institutions.  3,540  or  65.7%  of  the  people  contributed 
to  but  one  institution.  Of  this  number  1,559  contributed  to  the 
Jewish  Federation  alone. 

Second:  The  second  source  of  income  or  the  amount  re- 

ceived from  beneficiaries  of  institutions,  amounts  to  $535,678.59, 
or  36.2%  of  the  total  income,  and  is  received  by  56  of  the  67 
institutions. 

Third:  There  are  at  present  $2,911,106.56  in  invested  funds 
from  which  28  institutions  receive  an  annual  revenue  of  $166,- 
152.99* 

Fourth:  $32,514.13  were  received  by  28  institutions  from 
fairs,  socials,  etc.,  during  the  year’s  canvass. 

Fifth : The  total  amount  received  in  legacies  was  $434,- 

582.11  by  20  institutions.  In  only  five  cases  is  the  amount  re- 
ceived in  this  way  added  to  permanent  funds.  These  cases, 
however,  included  a large  proportion  of  the  total  amount  of 
legacies  received.  The  sum  of  $24,769.25  was  used  during  the 
year  in  meeting  annual  budgets.  Certain  organizations  are  thus 
consuming  for  current  expenses,  funds  which  are  usually  de- 
signed for  permanent  reserve  or  endowment.  The  amount  re- 
ceived from  this  general  source,  was  to  the  extent  of  about  $400,- 
000.00,  larger  than  usual,  owing  to  the  death  and  consequent 
bequests  of  one  of  our  largest  givers. 

Sixth:  29  institutions  report  an  income  of  $16,049.33  from 
sources  outside  the  city. 

Seventh:  There  are  many  minor  sources  of  income  which 

cannot  be  specifically  indicated  because  they  are  so  varied  in 
nature,  but  when  added  together  they  comprise  the  total  of 
$107,478.34.  A careful  study  of  these  items  show  that  $29,800 
must  be  secured  from  solicited  contributions  if  the  total  char- 
itable budget  is  to  include  the  present  million  and  a half. 

These  results  may  be  briefly  and  approximately  stated  as 
follows : The  total  charitable  budget,  (excepting  the  unusual 

legacies  of  this  year)  is  $1,500,000.00;  one-third  of  this  sum,  or 
$535,000  is  annually  derived  from  beneficiaries.  About  $185,- 
000.00  can  be  counted  upon  from  endowment  and  $30,000.00 


* The  figures  here  given  thruout  are  those  obtained  in  the  survey  of  1909. 


17 

from  legacies.  Probably  $15,000  will  be  the  annual  return  from 
out-of-town  donations.  $70,000.00  would  be  the  approximate 
amount  of  miscellaneous  sources  of  income  which  would  include 
items  of  petty  cash,  etc.,  leaving  $665,000  to  be  raised  annually 
by  a federated  board,  by  means  of  contributions  received  directly 
from  the  public.  Taking  the  results  of  the  present  canvass  as  a 
standard,  this  item  would  probably  be  secured  as  follows : $15,- 
000  from  anonymous  donations,  $25,000  from  donations  re- 
ceived in  sums  of  less  than  $5,  $9,000  from  contributing  mem- 
berships. $200,000  from  regular  contributors  to  be  used  in 
adding  the  new  equipment  which  is  required  each  year  by  the 
different  charities  and  $416,000  would  be  the  approximate 
amount  to  be  realized  from  the  item  of  regular  donations  con- 
tributed in  amounts  of  $5  and  over  as  it  is  now  divided.  This 
division  would  eliminate  all  expensive  methods  of  securing  con- 
tributions to  support  charity,  such  as  holding  fairs,  benefit  enter- 
tainments, hiring  paid  solicitors,  sending  out  letters  which  do  not 
make  adequate  returns  for  the  amount  of  expense  involved,  and 
the  salaries  of  representatives  employed  to  raise  such  funds. 
A comparison  of  the  two  canvasses  proves  interesting.  The 
budgets  of  the  institutions,  including  new  organizations,  have 
increased  from  $993,343.00  to  $1,483,197.47.  An  increase  of 
$58,786.88  can  be  attributed  to  the  budgets  of  seven  organiza- 
tions new  to  this  canvass.  Forty-six  institutions  have  made  an 
increase  in  their  budgets  which  amounts  to  $593,480.14.  Three 
institutions  whose  reports  it  was  impossible  to  secure,  represent 
a decrease  of  $89,713.00  and  sixteen  institutions  decreased  their 
budgets  to  the  extent  of  $72,699.55. 

The  endowment  funds  increased  from  $2,210,065.00  to 
$2,911,016.56.  The  income  from  legacies  has  increased  from  $24,- 
464.00  to  $434,582.11  but  as  we  have  noted,  this  is  an  excep- 
tional increase.  Of  this  latter  sum  $409,812.86  was  added  to 
permanent  endowment  funds  and  is  not  therefore  included  in 
the  yearly  budgets  of  the  institutions,  but  will  appear  as  per- 
manent funds  in  all  future  reports.  This  will  give  a permanent 
endowment  of  $3,320,829.42.  The  present  canvass  has  shown 
that  during  the  year  of  1909,  the  amount  of  $206,891.59  was  ex- 
pended in  erecting  new  buildings,  adding  equipment,  or  making 


Increase  of 
endowment 
and  legacies 


Increased 
earning 
capacity  of 
institutions 


Decrease  of 
income  from 
benefits  etc. 


Miscellaneous 

income 


Indebtedness 


Annual  deficit 


18 

other  additions  of  a permanent  nature  to  the  working  capital 
of  the  institutions.  The  income  from  beneficiaries,  or  the  earn- 
ing capacity  of  the  institutions,  has  shown  a very  gratifying  in- 
crease. In  1907,  the  amount  of  $397,589.00  was  received  from 
this  source;  in  1909  there  was  received  from  this  source,  $535,- 
678.59. 

The  vigorous  measures  of  this  committee  against  the  rais- 
ing of  funds  by  means  of  fairs,  beneficial  entertainments,  socials, 
etc.,  has  resulted  in  the  reduction  of  that  item  of  income  during 
the  two  and  one-half  years  intervening  between  the  two  can- 
vasses from  $38,895.00  to  $32,514.13.  There  has  also  been  a 
marked  decrease  in  the  amount  of  money  contributed  to  charity 
in  sums  of  less  than  $5.  The  difference  between  $33,719.00 
and  $26,338.22,  or  $7,380.78  appears  as  the  reduction.  The 
income  from  out-of-town  contributions  has  increased  $7,358.33, 
the  difference  between  $8,691.00  and  $16,049.33. 

The  annual  income  under  the  head  of  “sources  of  income 
not  otherwise  indicated”  is  $107,478.34  and  is  received  princi- 
pally from  cash  balances  left  over  from  previous  years  and 
other  sources  such  as  interest  on  checking  accounts,  sale  of  old 
equipment,  rents  from  property  owned  by  the  institutions,  and 
miscellaneous  petty  cash.  An  accurate  analysis  of  this  item 
reveals  the  fact  that  scarcely  more  than  $77,678.34  could  be 
definitely  depended  upon  as  a regular  income  from  this  head. 
It  would  therefore  be  necessary  to  raise  $29,800.00  in  general 
subscriptions  instead  of  from  this  source. 

The  present  total  building  indebtedness  and  similar  incum- 
brances amount  to  $895,567.59,  and  are  a very  small  obligation 
as  compared  with  the  value  of  property  now  held  by  the  seventy 
charities.  This  debt  could  be  carried  for  years  at  a small  rate 
of  interest  and  without  extra  inconvenience  even  taking  into 
consideration  the  annual  depreciation  of  equipment. 

The  total  deficits  in  the  yearly  budgets  amounted  to  $51,- 
740.92.  This  deficit  is  not  large  in  any  particular  case  and  is 
very  evenly  divided  among  nineteen  institutions  to  four  of 
which  can  be  attributed  over  one-half  of  the  deficit.  Deducting 
the  surplus  found  to  be  on  hand  January  1st,  1910,  which  was 
accumulated  by  forty-two  institutions  and  amounted  to  $43,- 


19 


597.49,  we  find  that  the  total  deficit  for  charitable  work  in 
Cleveland  during  the  year  of  1909  was  only  $8,143.43,  a very 
gratifying  result  when  the  tremendous  increase  in  budgets  is 
considered.  The  fact  that  there  was  a small  deficit  does  not  in- 
dicate that  the  institutions  have  solved  their  financial  problem. 
On  the  contrary,  increased  cost  of  collecting  funds,  the  decreas- 
ing of  the  amount  of  the  budgets  by  nineteen  institutions,  the 
suspension  of  work,  because  of  lack  of  funds  by  one  institution 
and  the  marked  increase  of  permanent  indebtedness  by  other  or- 
ganizations in  this,  a time  when  money  is  easily  to  be  secured, 
indicates  that  there  are  serious  problems  still  to  be  solved. 

Twentyone  institutions  report  a total  cost  of  collecting  funds 
for  their  institutions  of  $20,816.91.  Other  institutions  do  not 
report  on  this  item,  giving  as  a reason  the  impossibility  of  cor- 
rectly ascertaining  the  correct  cost  to  the  institution,  in  view 
of  the  fact  that  in  many  instances  the  workers  of  the  particular 
institutions  are  called  away  to  raise  money  when  their  services 
are  most  needed  to  direct  the  work  of  the  institution,  but  con- 
ditions seem  to  indicate  that  the  committee’s  former  estimate  of 
$65,000  or  $70,000  as  the  cost  of  collection,  is  not  excessive. 

The  previous  canvass  showed  that  $420,454.00  was  con- 
tributed in  sums  of  $5  and  over.  During  the  last  calendar  year 
the  sum  of  $499,639.51  was  contributed  in  sums  of  $5  and 
over,  for  which  there  are  on  file  at  present  cards  showing  the 
names  of  the  people  giving  this  sum.  This  shows  an  increase 
of  $79,185.51  in  the  amounts  included  and  accountable  for  in 
the  card  files.  To  the  above  must  be  added  the  increased 
amounts  received  from  purely  beneficial  memberships,  anony- 
mous contributions  and  donations  in  amounts  of  less  than  $5 
for  which  no  names  were  filed,  amounting  to  $11,969.73.  This 
makes  a total  increase  of  $91,155.24  of  donations  from  the  pub- 
lic during  the  two  and  one-half  years  period  intervening  between 
the  two  years  canvass. 

Along  with  the  large  increase  in  the  budgets,  one  is  sur- 
prised to  find  that  there  has  not  been  a corresponding  increase 
in  the  number  of  contributors,  but  rather  a decrease  from 
5,733  to  5,386,  or  6%  of  the  present  number  of  contributors. 
The  Jewish  Federation,  on  the  other  hand,  has  increased  by 


Excessive  cost 
of  collection 


Increased 

public 

contributions 


Decreased 
number  of 
contributors 


20 


Objectionable 
fe attires  of 
present  system 


Increasing 
inadequacy  of 
present 
methods 


308.  It  is  not  fair  to  allow  the  Jewish  Federation  increase  to 
be  figured  in  the  total  number  of  contributors,  since  they  are 
at  present  working  upon  the  plan  which  this  committee  expects 
in  the  future  either  to  follow  or  institute  in  a modified  form. 
Therefore,  subtracting  this  increase,  we  find  that  the  total  num- 
ber of  contributors  to  charity  has  decreased  by  11%  during 
the  given  period,  while  the  budgets  of  the  institutions  have  in- 
creased by  approximately  50%.  It  is  also  interesting  to  note 
that  the  decrease  by  deaths  may  be  estimated  from  the  fact  that 
at  present  seventeen  names  appear  in  the  card  files  of  people  who 
died  during  the  calendar  year,  after  having  already  made  their 
•annual  contribution  to  charitable  work.  In  this  very  moderate 
death  rate  there  lies  a possible  danger.  If  three  of  the  largest 
contributors  should  die  during  any  one  year  without  making 
adequate  provision  for  the  various  charities  to  which  they  now 
contribute,  or  if  their  property  should  be  made  unavailable  for 
public  purposes  during  the  administration  of  the  estate,  which 
is  not  an  infrequent  occurence,  it  is  estimated  that  17%  of 
the  charities  of  the  city  would  be  practically  bankrupt. 

The  most  serious  aspect  of  the  present  situation  is  not  the 
fact  that  budgets  have  increased,  nor  that  the  number  of  con- 
tributors has  decreased,  but  rather  that  there  has  been  such  great 
disparity  in  development  among  existing  institutions  having 
equally  important  needs  to  meet,  and  all  doing  an  efficient  and 
necessary  work. 

It  is  apparent  that  unless  some  equitable  force  is  brought 
into  play  properly  to  distribute  charitable  funds,  it  will  be  only 
a question  of  time  when  many  institutions  doing  reliable  and 
efficient  work  will  be  in  a state  of  bankruptcy,  while  others  will 
be  laying  up  a surplus  and  enlarging  their  work  along  lines  not 
warranted,  when  contrasted  with  other  situations  of  extreme 
need. 

The  majority  of  institutions  are  complaining  that  it  is  prac- 
tically impossible  to  raise  sufficient  money  at  the  present  time 
to  support  their  work.  The  returns  from  letters  and  circulars 
in  which  appeals  are  made  are  meagre,  when  compared  with 
similar  returns  of  a year  or  two  ago.  One  institution  in  1907 
sent  out  330  letters  requesting  $10  subscriptions.  These  letters 


21 


netted  an  average  return  of  $1  apiece.  In  1909,  two  hundred 
people  were  chosen  from  this  list  and  similar  letters  requesting 
ten  dollars  each  were  sent  to  them.  The  average  return  from 
these  letters  was  twenty-five  cents  each.  Another  institution  sent 
out  letters  in  1907  which  netted  an  average  return  of  about 
one  dollar,  while  in  1909,  letters  addressed  to  the  same  people 
netted  an  average  of  thirty  cents. 

It  has  been  found  that  in  practically  all  cases,  the  cost  of 
solicitation  is  materially  increasing,  almost  the  only  exceptions 
being  found  in  those  institutions  whose  experienced  officers  have 
particularly  developed  the  financial  side  of  their  work,  some- 
times to  the  detriment  of  the  charitable  work  for  which  they 
were  designed. 

Three  possible  means  of  raising  money  for  the  support  of 
Cleveland’s  charities  now  present  themselves,  and  between  these 
the  directors  of  charitable  work  must  choose.  First : The  pres- 
ent method  of  appealing  to  a small  circle  of  contributors  to 
charity  by  letter,  by  direct  solicitation,  or  through  paid  solicitor 
may  be  continued;  but  this  means  inequality  of  work,  continued 
curtailment  of  resources,  and  an  increasing  and  unnecessary  bur- 
den upon  contributors.  Second : It  would  be  possible  for 

many  charities  to  combine  and  employ  expert  financiers  to  raise 
money  for  them,  pooling  their  expenditures  and  receipts.  This 
involves  a plan  very  similar  to  the  federation  plan,  but  lacking 
in  the  essential  elements  of  having  one  central  body  capable  of 
demanding  a recognition  of  the  rights  of  all  as  opposed  to  the 
desires  of  the  few  institutions.  This  possible  method  of  rais- 
ing funds  for  charity,  therefore,  but  leads  to  the  third  plan; 
namely,  a central  organization,  composed  of  representatives 
from  the  contributors  and  institutions,  which  will  collect  money 
necessary  for  the  support  of  charitable  work  and  divide  the 
amount  raised  in  accordance  with  the  wishes  of  the  donors  or 
pro  rata  according  to  the  needs  of  the  various  organizations. 

Your  committee  recognizes  that  the  institution  of  a federa- 
tion for  the  collection  of  money  for  the  support  of  Cleveland 
charities  offers  many  problems;  but  our  investigation  has  con- 
vinced us  that  the  solution  of  these  problems  is  not  impossible. 
The  argument  against  the  plan  which  is  most  frequently  pre- 


Possible 

solutions 


Federation 
plan  most 
feasible 


Problems 

presented 


22 


Elimination 
of  personal 
element? 


Personal 

interest 

increased 


sented  and  which,  if  it  is  sustained,  is  the  most  serious  objec- 
tion to  the  plan,  is  to  the  effect  that  the  federation  would  elim- 
inate the  element  of  personal  interest  on  the  part  of  the  giver 
in  the  charitable  work  to  which  he  contributes.  That  is — it  is 
contended  that  with  a federation,  contributions  to  charity  would 
be  simply  mechanical.  The  contributor  would  not  give  because 
of  his  interest  in  the  work,  but  would  give  simply  as  a result 
of  his  financial  arrangement  with  the  federation.  As  a matter 
of  fact,  one  of  the  prime  objects  which  your  committee  has  in 
mind,  in  recommending  the  adoption  of  the  plan  of  federation, 
lies  in  the  opportunity  which  the  federation  will  give  for  de- 
veloping that  element  of  personal  interest  in  charitable  work  of 
Cleveland.  The  degree  to  which  the  element  of  personal  in- 
terest at  present  exists  is,  your  committee  believes,  largely  over- 
estimated. Ten  years  careful  study  and  intimate  association 
with  the  giving  public  and  the  benevolent  work  of  Cleveland, 
has  convinced  the  committee  that  the  very  large  majority  of 
contributors  give,  not  to  organizations  in  which  they  have  a 
keen  intelligent  interest,  but  to  organizations  whose  representa- 
tives are  able  to  present  the  most  convincing  account  of  the 
need  of  the  organization.  It  is  true  that  some  of  the  largest 
contributors  give  at  present  only  after  intimate  knowledge  of 
the  work  of  various  organizations,  and  with  the  most  careful  dis- 
crimination. The  federation  plan  would  in  no  way  interfere 
with  their  present  plan  of  giving,  but  would  simply  facilitate  the 
investigations  made  by  these  men  and  would  distribute  their  con- 
tributions as  they  might  designate.  A large  part  of  the  work 
of  the  director  of  the  federation  and  his  assistants  will  be  to 
develop  a systematic  scheme  of  education  by  which  the  aver- 
age giver  of  the  community  will  be  brought  into  intimate  touch 
with  charitable  work,  and  each  giver  made  to  feel  the  individual 
claim  of  the  institution  or  institutions,  the  character  of  whose 
work  would  naturally  appeal  to  him  most. 

The  same  claim  of  the  elimination  of  personal  element  was 
generally  made  at  the  beginning  of  the  work  of  the  committee 
on  benevolent  associations.  It  was  charged  that  the  presenta- 
tion of  an  endorsement  card  by  any  organization  would  take  the 
place  of  the  personal  investigation  by  the  giver,  which  would 


23 


be  necessary,  were  there  no  endorsement  card  upon  which  he 
could  rely.  As  a matter  of  fact,  the  endorsement  card  has 
served  simply  as  an  opening  for  constructive  educational  work, 
with  the  result  that  during  the  past  ten  years,  there  has  been 
a remarkable  increase  in  personal  interest  and  understanding  of 
Cleveland  charitable  work,  and  a consequent  increase  in  intelli- 
gent giving.  It  is  recognized  by  charitable  experts  throughout 
the  country,  that  the  support  of  Cleveland  philanthropies  is 
probably  of  a more  intelligent  character  than  that  of  any  other 
city  in  the  country,  and  the  constructive  educational  work  of 
the  committee  on  benevolent  associations  must  receive  the  credit. 
The  plan  of  federation  will  give  unequalled  opportunity  for  a 
further  vigorous  prosecution  of  this  campaign  of  education,  and 
your  committee  believes  will  result  in  more  intelligent  and  more 
earnest  interest,  and  in  consequently  increased  giving. 

Again,  it  is  suggested  that  under  a federated  board,  not 
only  the  introduction  and  establishment  of  work  along  new  lines 
would  be  discouraged,  but  that  the  enlargement  of  existing  or- 
ganizations or  an  increase  in  their  facilities,  which  would  mean 
greater  budgets,  would  be  unlikely.  Sufficient  evidence  that  this 
fear  is  groundless  may  be  found  in  the  history  of  the  com- 
mittee on  benevolent  associations.  It  is  true  that  under  some 
circumstances,  the  inauguration  of  new  work  has  been  dis- 
couraged, but  in  each  instance  it  has  been  conclusively  shown 
that  the  new  work  either  was  not  needed  or  that  it  could  well 
be  undertaken  by  existing  organizations.  On  the  other  hand, 
the  committee  has  in  a large  number  of  instances  encouraged 
and  aided  the  establishment  of  new  lines  of  effort,  and  has  as- 
sisted in  developing  and  encouraging  existing  institutions.  It 
is  probable  that  during  the  last  ten  years,  more  new  work  has 
been  inaugurated  under  the  supervision  of  the  committee  on 
benevolent  associations  than  during  any  previous  decade.  With 
the  addition  of  several  new  institutions  during  recent  years, 
no  one  fully  acquainted  with  the  situation,  can  fail  to  realize 
that  the  charitable  needs  of  the  city  have  never  been  as  com- 
pletely cared  for  as  they  are  today.  Furthermore,  the  commit- 
tee’s investigation  has  shown  that  some  institutions  could,  with 
proper  guidance  and  the  addition  of  new  equipment,  be  made 


Inauguration 
of  new  work 
unlikely? 


Federation 
will  encourage 
development 


24 


r 


Reduction  in 
the  amount  of 
contributions ? 


Increased 

contributions 

probable 


Distribution 
of  burden 


practically  self-sustaining.  It  cannot  be  doubted  that  under  a 
federation  administered  by  a group  of  business  and  professional 
men  of  sound  judgment,  the  effort  to  place  an  institution  upon 
a self-sustaining  basis  by  means  of  a temporarily  increased 
budget,  would  be  encouraged  and  assisted. 

There  is,  of  course,  the  vital  question  as  to  whether  the 
federation  will  be  able  to  obtain  as  large  an  amount  of 
money  as  is  at  present  secured  by  the  benevolent  associations 
of  the  city.  This  question  can  be  conclusively  determined  only 
by  a careful  test  of  the  federated  plan.  It  is,  however,  true 
that  in  no  instance  has  the  plan  of  federation  as  adopted  by 
the  Jewish  charities  of  various  cities  failed  to  raise  at  least  the 
amount  of  money  which  was  formerly  secured  by  individual 
solicitation;  in  practically  every  instance  the  total  amount  of 
subscriptions  has  been  largely  increased,  and  in  many  instances 
doubled.  It  has  been  found  that  most  givers,  since  they  are  so 
constantly  solicited  and  give  so  many  times  in  small  quantities, 
estimate  their  gifts  to  be  largely  in  excess  of  the  actual  amount, 
and  furthermore,  that  many  large  as  well  as  small  contributors 
are  willing  to  increase  their  gifts  when  the  contribution  is  made 
through  a central  body,  not  as  a result  of  constant,  annoying 
and  non-constructive  solicitation,  but  through  the  presentation 
of  the  charitable  work  of  the  city  in  a constructive  and  educa- 
tional manner.  Further,  if  the  board  of  the  federation  should 
so  decide,  in  the  beginning  the  federated  collection  can  be  con- 
fined only  to  those  who  agree  to  give  an  amount  equal  to  their 
former  gifts,  allowing  the  charitable  organizations  to  continue 
their  general  solicitation  from  non-members  of  the  federation, 
according  to  the  former  manner.  It  must  be  remembered  that 
the  combination  of  the  givers  of  the  city  under  a federation  will 
bring  to  light  many  who  are  not  now  contributing,  and  that 
the  federation,  as  well  as  individual  organizations,  will  be  able 
to  direct  its  effort  towards  securing  contributions  from  these 
present  non-givers.  It  will  be  perfectly  feasible  to  permit  the 
organizations  of  the  city  to  collect  from  any  individuals  who 
are  not  members  of  the  federation,  so  that  the  present  solicitation 
which  is  now  directed  towards  large  givers,  can  be  turned  to- 
ward non-givers  with  the  result  that  many  new  contributors 


25 


are  likely  to  be  interested.  Every  charitable  work  which  has 
increased  its  income  in  any  marked  degree  has  done  so  through 
a process  of  careful  education.  Your  committee  believes  that 
the  same  process  applied  by  the  federation  to  the  whole  prob- 
lem of  charity  in  Cleveland,  will  produce  similar  results.  The 
adoption  of  the  federated  plan  would  result,  not  only  in  more 
economical  methods  of  securing  money,  which  would  save  most 
of  the  present  collection  cost  of  sixty  or  seventy  thousand  dol- 
lars, but  it  would  save  a tremendous  amount  of  time  which 
is  now  expended  by  trustees,  directors,  committee,  and  paid 
officials  in  developing  plans  for  financing  the  organizations  or 
in  actually  raising  money,  and  would  thus  leave  this  time  free 
to  be  used  for  the  constructive  work  of  the  institution.  Fur- 
thermore, the  supervision  developed  by  the  federation  would 
doubtless  result  in  more  careful  and  economical  management  on 
the  part  of  many  institutions,  with  a corresponding  reduction  in 
cost  of  maintenance. 


The  objection  has  been  made  that  a federated  plan  would 
operate  upon  charitable  work  in  much  the  same  manner  as  an 
excessive  endowment  fund  does, — that  is,  the  officers  of  in- 
stitutions, when  relieved  of  the  necessity  of  raising  funds  would 
cease  to  be  aggressive,  and  would  not  attempt  the  development 
of  their  work  to  meet  new  needs  in  order  that  the  work  of  their 
institutions  may  continue  to  appeal  to  the  contributing  public. 
Is  it  not  true,  however,  that  this  responsibility  for  constantly  in- 
creasing the  efficiency  of  the  charitable-  work  of  the  city  would 
not  in  any  degree  be  removed,  but  that  it  would  rather  be  stimu- 
lated under  the  supervision  of  the  federated  board  which  is  in 
a position  intelligently  to  require  effective  work  as  a condition 
of  support?  Further,  would  not  the  added  responsibility  of  the 
federated  board  for  the  development  of  all  of  the  charity  of 
Cleveland,  together  with  its  intimate  knowledge  of  the  affairs 
of  all  institutions,  and  its  intimate  relation  with  the  supporters 
of  all  institutions,  result  in  an  added  stimulus  to  earnest  en- 
deavor ? 

It  has  been  suggested  that  the  centralization  of  the  man- 
agement of  the  city’s  charity  would  result  eventually  in  placing 
in  the  hands  of  a few  individuals,  an  undue  degree  of  control 


Organization 
relieved  from 
responsibility  f 


Increased 
supervision 
will  secure 
increased 
responsibility 


Danger  of 
arbitrary 
supervision ? 


Experience 

proves 

arbitrary 

supervision 

unlikely 


A dvantages 
of federation 
summarized 


The 

elimination 
of  useless 
solicitation 


Const f uctive 

program 

substituted 


Conservation 
of  energy 


Increase  of 
efficiency 


26 

with  disastrous  results  to  charitable  work.  The  plan  of  the 
committee,  however,  contemplates  a board  which  will  represent 
both  contributors  and  institutions,  so  organized  as  to  make  such 
control  as  this  almost  impossible.  This  board,  it  should  be  noted, 
will  be  no  less  dependent  than  are  the  separate  institutions  today 
upon  the  retention  of  the  good  will  of  the  philanthropic  public. 
It  should  furthermore  be  remembered  that,  although  the  commit- 
tee on  benevolent  associations  for  ten  years  has  exercised  a con- 
trolling supervision  over  the  charity  of  Cleveland,  the  charge  of 
undue  influence  or  dictatorial  management  has  never  been  made. 

It  should  not  be  forgotten  that  the  various  charitable  in- 
stitutions and  agencies  are,  after  all,  simply  doing  different  parts 
of  the  same  great  work  of  amelioration.  The  appreciation  of  this 
community  of  purpose  has  led  the  Presbyterian  and  Congre- 
gational denominations  to  adopt  the  “apportionment  plan”  of 
giving,  a plan  very  similar  to  the  one  here  proposed.  This  plan 
arranges  one  co-operative  financial  canvass  for  all,  allowing  each 
of  the  national  societies  of  the  denominations  to  further  its  par- 
ticular work  in  its  own  way,  except  where  it  conflicts  with  the 
others,  namely,  in  the  appeal  for  funds. 

The  committee  on  benevolent  associations  believes  that  a 
solution  of  these  problems  is  altogether  feasible  and  that  the 
advantages  to  be  secured  through  a plan  of  federation  render 
its  adoption  advisable.  Summarizing  briefly,  the  committee  be- 
lieves that  the  federation  will  insure  great  economy  in  the  col- 
lection of  funds.  The  conservative  estimate  of  $60,000  or  $70,- 
000  as  a present  cost  of  collection  will  be  reduced  to  perhaps 
$15,000.  The  large  amount  of  time  which  is  given  by  contribu- 
tors in  the  consideration  of  various  appeals  which  are  presented 
by  many  solicitors,  will  be  eliminated  and  a constructive  and 
intelligent  presentation  of  the  whole  charitable  situation  of  Cleve- 
land will  be  substituted.  The  time  of  boards  of  directors  and 
paid  employees  now  consumed  in  developing  financial  plans  or 
in  soliciting  money  will  be  conserved  for  active  service  to  or- 
ganizations. 

The  federation  will  secure  increased  efficiency  in  the  char- 
itable work  of  Cleveland.  The  supervision  of  the  federated 


2 7 

board  will  insure  more  careful  administration  of  the  work  of 
individual  institutions,  and  the  broad  knowledge  of  the  needs 
of  the  field  which  this  board  will  have,  will  make  it  possible 
to  eliminate  inefficent  organizations  and  to  inaugurate  work  to 
meet  new  needs  not  already  cared  for. 

The  federation  planned  will  by  means  of  a constructive 
and  educational  program,  develop  the  relationship  between  con- 
tributor and  organization  and  will  increase  the  element  of  per- 
sonal interest  on  the  part  of  the  contributor.  It  will  through  its 
facilities  for  investigation  and  presentation,  render  easier  of 
general  attainment  the  intimate  knowledge  of  charitable  work 
which  is  already  possessed  by  some  of  the  largest  contributors 
in  Cleveland.  Judging  from  the  astonishing  decrease  in  the 
number  of  givers  as  shown  on  page  20,  this  broadening  of  the 
city’s  philanthropic  interest  is  one  of  its  most  serious  and  urgent 
needs. 

The  plan  of  federation  will,  the  committee  believes,  in- 
crease eventually,  at  least,  the  amount  of  money  contributed  to 
Cleveland  charities.  Many  large  contributors  have  agreed  to 
increase  their  contributions  under  the  federated  plan ; many 
other  contributors  will  desire  to  increase  their  contributions  when 
the  needs  of  all  charitable  organizations  in  Cleveland  and  their 
relation  to  one  another  are  presented;  and  many  Cleveland  citi- 
zens who  are  not  now  contributors  will  make  contributions  when 
these  needs  are  put  before  them  in  a constructive  manner.  The 
federation  will  plan  to  conduct  a campaign  among  those  who  are 
not  now  contributors  in  order  to  increase  the  number  of  givers, 
and  the  fact  that  organizations  will  be  relieved  from  the  burden 
of  solicitation  from  those  who  join  the  federation,  will  leave  the 
organizations  freer  to  secure  contributions  from  non-contributors. 

The  opinions  of  large  contributors  and  of  experts  in  char- 
itable matters  confirm  the  judgment  of  your  committee  in  its 
plans  for  a federated  scheme  of  giving. 

One  of  the  largest  givers  to  Cleveland  charity,  Mr.  Rocke- 
feller, says:  “We  must  always  remember  that  there  is  not 

enough  money  for  the  work  of  human  uplift  and  that  there 
never  can  be.  How  vitally  important  it  is,  therefore,  that  the 
expenditure  should  go  as  far  as  possible  and  be  used  with  the 
greatest  intelligence. 


More  effective 
administration 


Increased 
fersonat 
interest 
More  intimate 
knowledge  of 
charitable  work 


Increased 

resources 


Increased 
number  of 
contributors 


Opinion  of 
large 

contributors 
and  charitable 
experts 


28 


Plan  of 
organization 


“I  have  been  frank  to  say  that  I believe  in  the  spirit  of  com- 
bination and  co-operation  when  properly  and  fairly  conducted 
in  the  world  of  commercial  affairs,  on  the  principle  that  it 
helps  to  reduce  waste;  and  waste  is  a dissipation  of  power.  I 
sincerely  hope  and  thoroughly  believe  that  this  same  principle 
will  eventually  prevail  in  the  art  of  giving  as  it  does  in  busi- 
ness. It  is  not  merely  the  tendency  of  the  times  developed  by 
more  exacting  conditions  in  industry,  but  it  should  make  its 
most  effective  appeal  to  the  hearts  of  the  people  who  are  striving 
to  do  the  most  good  to  the  largest  number.” 

A man  who  may  perhaps  be  considered  the  highest  authority 
on  charitable  matters  in  this  country  has  stated : “In  a city  like 

Cleveland,  in  which  the  Jewish  charities  are  already  success- 
fully federated,  and  in  which  the  Chamber  of  Commerce  through 
its  committee  on  benevolent  associations  has  been  virtually  in 
control  of  the  charitable  situation  for  some  time,  I think  that 
the  federaion  of  all  further  charitable  activities  which  is  how 
proposed  is  well  worth  trying.  Looking  at  the  matter  from  the 
national  poiiff  of  view  there  is  no  doubt  that  it  would  be  of 
very  great  advantage  to  have  this  experiment  thoroughly  tried, 
and  there  are,  I think,  no  conditions  so  favorable  for  trying  it  as 
in  Cleveland.” 

The  committee  in  its  former  report  suggested  a tentative 
scheme  for  organizing  the  federation,  and  the  plan,  with  some 
modification,  is  again  presented  as  a basis  upon  which  the  work 
can  be  initiated. 

The  organization  is  to  be  known  as  the  Cleveland  Federa- 
tion for  Charity  and  Philanthropy,  and  is  to  be  composed  of  a 
board  of  thirty  trustees  chosen  in  the  following  manner : 

Ten  members  are  to  be  elected  by  the  organizations  which 
become  parties  to  the  federation. 

Ten  members  are  to  be  elected  by  the  patrons  who  contribute 
funds  to  the  federation’s  support. 

Ten  members  are  to  be  appointed  by  the  president  of  the 
Chamber  of  Commerce  and  approved  by  its  board  of  directors. 

Prior  to  the  time  when  this  plan  is  to  go  into  effect  and 
annually  during  its  continuance,  there  shall  be  held  a meeting  of 
representatives  of  the  constituent  organizations,  and  another 


29 

meeting  of  the  patrons.  The  meeting  of  the  constituent  organ- 
izations shall  consist  of  one  representative  from  each  organiza- 
tion, selected  in  any  manner  approved  by  it,  and  at  the  first  of 
these  meetings  five  members  of  the  board  for  one  year  and  five 
for  two  years,  are  to  be  elected,  and  annually  thereafter  five 
shall  be  elected  for  two  years.  This  shall  be  understood  to  mean 
that  the  term  of  the  first  five  shall  expire  just  previous  to  the 
beginning  of  the  first  complete  fiscal  year,  as  that  date  may  be 
established,  and  the  term  of  the  second  five  shall  expire  at  the 
end  of  the  first  complete  fiscal  year,  or  until  their  successors  be 
elected. 

Th$  meeting  of  patrons  is  to  be  open  to  any  person  contrib- 
uting $10.00  or  mor£  to  the  federation  during  the  year  prior  to 
the  meeting.  A donor  may  send  his  personal  delegate  but  this 
delegate  is  to  be  free  to  represent  one  person  only. 

The  appointments  to  the  board  by  the  president  of  the  Cham- 
ber of  Commerce  shall  be  made  immediately  subsequent  to  the 
two  elections  above  noted,  and  for  the  same  tenure. 

No  person  receiving  compensation  from  any  of  the  constitu- 
ent organizations  shall  be  eligible  to  membership  on  the  federa- 
tion board. 

In  the  case  of  a vacancy  in  any  .of  the  three  groups  com- 
posing the  board,  caused  by  death  or  other  reason,  the  other 
members  of  that  group  are  to  appoint  a representative  to  serve 
with  them  on  the  board  until  the  following  election  of  repre- 
sentatives. 

The  federation  board  shall  provide  for  the  election  of  an 
executive  committee  and  of  a president,  vice  president  and 
treasurer.  The  board  shall  have  full  authority  for  the  collection 
and  disbursing  of  the  funds  of  the  federation. 

The  board  shall  appoint  and  fix  the  salary  of  an  executive 
secretary,  who  shall  appoint  and  have  full  charge  of  the  em- 
ployes of  the  federation,  their  salaries  being  fixed  by  the  execu- 
tive committee. 


It  is  recommended  that  any  organization  be  considered  elig- 
ible to  participation  in  the  federation  which  makes  to  the  citizens 
of  Cleveland,  without  restriction  to  religious,  denominational  or 
other  special  affiliation,  a legitimate  appeal  for  funds  with  which 
to  further  its  activities. 


Proposed 
basis  of 
participation 


30 


Plan  of 

agreernent 

betwee7v 

federatiori  and 

cojistituent 

organizations 


The  relation  between  a constituent  organization  and  the 
federation  will  be  subject  to  such  conditions  as  may  be  from  time 
to  time  agreed  and  established,  and  will  at  all  times  be  subject 
to  the  right  of  either  party  to  dissolve  it  at  the  end  of  any  fiscal 
year  of  the  federation. 

Consultation  with  many  persons  interested  in  the  various  or- 
ganizations suggests  the  following  items  of  agreement  between 
the  federation  and  the  organizations  that  will  join  it : 

1.  When  the  federation  obtains  from  any  given  person  an 
unrestricted  pledge  equal  to  his  total  gifts  to  the  current  expenses 
of  the  constituent  institutions  during  the  preceding  year,  the  fed- 
eration thereupon  agrees  to  assign  to  each  organization  an  amount 
equal  to  the  gift  as  thus  previously  received  from  that  person. 

When  the  federation  receives  an  unrestricted  pledge  total- 
ing more  than  10%  above  the  aggregate  thus  previously  given  the 
various  constituents,  it  agrees  to  divide  one-half  the  increase  pro 
rata  among  the  institutions  which  were  his  beneficiaries  during 
the  year  preceding  the  time  of  his  gift  to  the  federation.  In  case 
the  amount  is  less  than  the  total  of  those  previously  given  to  sep- 
arate institutions,  the  amount  shall  be  divided  pro  rata  among 
the  earlier  beneficiaries. 

This  agreement  is  to  continue  until  the  end  of  the  second 
fiscal  year. 

If  the  donor  prefers  to  designate  the  direction  of  his  gift, 
his  liberty  to  do  so  is  to  be  complete. 

2.  Each  constituent  organization  is  to  be  free  to  solicit  do- 
nations from  persons  not  making  their  gifts  through  the  federa- 
tion. When  donors  obtained  through  these  efforts  become  fed- 
eration subscribers,  the  arrangement  above  noted  becomes  ef- 
fective. 

3.  Each  institution  is  to  be  free — and  is  urged — to  maintain 
close  touch  with  its  friends  and  constituents.  The  federation  will 
plan  to  furnish  to  the  organizations  up-to-date  lists  of  their  do- 
nors, and  in  every  other  way  will  seek  to  promote  the  relation 
between  the  organization  and  the  individual.  A principal  duty  of 
the  federation  shall  be  to  widen  in  every  possible  manner  the 
charitable,  philanthropic  and  social  interests  of  the  whole  list  of 
donors. 


31 


4.  For  the  present  the  agreement  is  to  involve  only  the 
ordinary  current  expense  budgets  of  each  institution.  Each  or- 
ganization agrees  not  to  solicit  gifts,  nor  to  endeavor  to  obtain 
designations,  at  the  hands  of  the  contributors  to  the  federation. 
The  need  and  the  method  by  which  shall  be  raised  funds  for 
purposes  outside  of  current  expenses  are  to  be  in  each  case  de- 
termined by  consultation  between  the  federation  and  the  organ- 
ization concerned. 


5.  Tags,  tickets,  etc.,  are  not  to  be  circulated  by  any  or- 
ganization in  the  federation.  It  shall  be  the  aim  of  the  federa- 
tion to  do  away  with  benefit  bazars,  fairs,  entertainments  and 
balls.  For  the  present,  each  constituent  organization  agrees  not 
to  arrange  these  benefits  without  consulting  the  federation. 


6.  Such  reports  on  their  current  activities  as  may  be  de- 
sired are  to  be  made  to  the  board  by  the  constituent  organizations, 
and  their  boofts  are  to  be  open  to  the  audit  of  the  board. 

In  making  the  above  recommendations,  the  committee  has  in 
mind  the  launching  of  the  federation  upon  as  effective  a career 
as  possible.  It  does  not  assume,  however,  that  the  arrange- 
ments suggested  are  to  be  allowed  to  lessen  the  power  of  the 
federation  after  its  organization  to  make  such  adjustments  as 
experience  shows  to  be  desirable  for  its  greatest  service  and 
success. 


In  view  of  the  careful  and  extended  attention  already  given  n , 

, . , . , . r ,,  , ™ ^ Recommend- 

this  subject,  the  committee  respectfully  recommends  to  The  Cleve-  a^ons 

land  Chamber  of  Commerce  that  steps  be  taken  to  put  the  Fed- 
eration Plan  into  operation  on  or  before  January  31st,  1913. 


As  a means  to  that  end,  it  further  recommends  that  the  Immediate 
Chamber  ask  its  president  to  serve  with  the  mayor,  the  judge  of  Initiation 
the  Probate  Court,  the  president  of  the  Bar  Association  and  the 
president  of  the  Academy  of  Medicine,  this  group  to  be  asked  to  A provisional 
appoint  a Provisional  Federation  Commission  for  the  perform-  commission 
ance  of  the  necessary  functions  of  the  Federation  Board,  pending 
the  organization  of  that  body. 


The  committee  also  suggests  that  a meeting  of  the  Chamber  Meeting 
of  Commerce  be  called  on  January  7th,  1913,  for  the  considera-  January 
tion  of  the  plan  as  here  proposed.  At  this  meeting  arrangements  Seventh 


32 


should  be  made  for  the  fullest  possible  discussion  of  the  project 
but  no  enlistment  of  contributors  should  be  attempted. 


M.  A.  Marks 
Edgar  E.  Adams 
John  Anisfield 
A.  A.  Augustus 
James  Barnett* 

C.  W.  Bingham 
C.  C.  Bolton 
R.  M.  Calfee 
A.  V.  Cannon 
A.  S.  Chisholm 
M.  A.  Fanning 


Albert  H.  Fiebach 
Alexander  Hadden 
P.  W.  Harvey 

C.  A.  Nicola 

D.  Z.  Norton 
R.  E.  Skeel 
Andrew  Squire 
J.  H.  Wade 

J.  J.  Thomas 
F.  E.  Wettstein 

E.  M.  Williams 


* The  report  as  here  submitted  varies  in  only  minor  details 
from  the  report  prepared  by  this  committee  in  1910.  The  names 
of  the  members  of  the  committee  as  constituted  then  and  now, 
are  therefore  given. 


